Case Law Details
Ara India Llp Vs National Faceless Assessment Centre Nafac (Allahabad High Court)
The case of Ara India LLP vs. National Faceless Assessment Centre (NAFAC), as heard by the Allahabad High Court, revolves around the issue of denying the opportunity for a personal hearing in a scrutiny assessment order passed by NAFAC under Section 143(3) read with Section 144B of the Income Tax Act for the Assessment Year 2022-23.
The petitioner sought relief in the form of quashing the ex parte scrutiny assessment order dated 22.03.2024, contending that despite their request for a personal hearing, the opportunity was denied, and the assessment order was passed prematurely.
Upon reviewing the case, the court noted that the denial of the opportunity for a personal hearing was indeed a valid concern. Referring to a previous case, the court emphasized the mandatory nature of providing a personal hearing if requested by the assessee during the assessment proceedings. It clarified that the provision for a personal hearing should not be considered optional at the discretion of the Assessing Officer (AO). Rather, it should be seen as a fundamental aspect of the assessment process, ensuring a fair and reasoned conclusion.
The court further elaborated on the importance of oral hearings in assessment proceedings, particularly in cases involving disputed facts and laws. It highlighted that written submissions alone might not sufficiently clarify the intricacies of a case, as interpretations can vary, and written communication may not always convey the intended message effectively. Thus, oral hearings are essential for effective discussion and reaching a reasoned conclusion, ensuring justice and maintaining trust in the adjudicatory authorities.
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